The U.S. Economy: A Distinctly Chill Wind

Do you detect a change in the weather, this Fall? You probably noticed that on Friday (November 2nd) the spot price of gold spiked to close at $806 per ounce, and silver at $14.53. (Both were 28 year highs. Yup, I told you so.) You also probably saw this article: Fed pumps [another] $41 Billion into US financial system. It is now obvious that Helicopter Ben and his Federal Reserve Board of Governors are in full scale panic mode. I should also mention that the very next day after the announcement of this huge injection of liquidity, the New York stock market went down more than 360 points. Apparently Mr. Market cannot be fooled. There is a chill breeze and a strong hint of recession in the air. Meanwhile, we read: Chrysler to cut up to 12,000 jobs. It seems that someone knows that there is a substantial economic downturn coming. One more news snippet: Citigroup to hold an emergency Saturday board meeting–CEO may resign.

All that I can say to SurvivalBlog readers is something that I’ve said many times before: Be ready. (Read: beans, bullets, Band-Aids and minimize your exposure to dollar-denominated investments.) Note to Ben Bernanke: Have fun re-arranging the deck chairs. Oh, by the way, that chill in the air might be because your predecessor (the nearsighted Mr. Magoo) charted a far northern course up toward the pack ice.